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The Effect of Carbon Tax on Inventory and Land Multimodal Integration
Thina Ardliana (a*), I Nyoman Pujawan (b), Nurhadi Siswanto (c)

a) Shipbuilding Institute of Polytechnic Surabaya (PPNS);
Doctoral Student at Industrial Engineering Department,
Sepuluh Nopember Institute of Technology (ITS)
Surabaya, Indonesia
*ardlianathina[at]gmail.com, thina.ardliana[at]ppns.ac.id
b) Industrial Engineering Department, Sepuluh Nopember Institute of Technology (ITS)
c) Industrial Engineering Department, Sepuluh Nopember Institute of Technology (ITS)


Abstract

Nowadays, the climate change has resulted in extreme weather events. This change happens because of the effect of global warming. One of the main factors is the carbon emissions that have exceeded the permitted limits. Many countries in the world have taken a significant action by making some commitments to fix it. One of the commitments is to give a penalty for the cost of emissions produced by a country or company. In this study, we developed an integration model between inventory and multimodal land transportation by focusing on the costs of emissions produced. To distribute products from several suppliers to several consumers, we proposed train as long distance transportation mode and truck as short distance transportation mode. The purpose of this study is to find the best solution for total system costs. The total cost consists of operational costs and emissions costs. From numerical experiments, the carbon tax rate affects the amount of carbon emissions and the total cost. The trade-off between emissions and costs will produce an optimal solution. In addition, it can be seen the impact of tax to the other decision variables such as inventory and transportation. The method used in finding the optimal condition is Mixed Integer Linear Programming.

Keywords: carbon tax; land multimodal; integration; inventory

Topic: Industrial Engineering

Link: https://ifory.id/abstract/YVGeyj2c3gEJ

Conference: The Third International Conference on Innovation in Engineering and Vocational Education (ICIEVE 2019)

Plain Format | Corresponding Author (Thina Ardliana)

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